Starting a Property Management Business

[Karl Miller]

While building up some funds to start in on actual purchase of real estate, I thought one way to get the door cracked open might be to start a property management business first.  Curious as to anyone's thoughts and ideas to start this discussion

[Christian Hansen]

Karl,

I started a property management company a couple of years ago and I can tell you it is not a "side-gig" there are a lot of puzzle pieces that you need to put in place to do it properly. By properly I mean in a way where you are not exposing yourself to a lot of liability. You are handling other peoples money and overseeing their assets (real estate), you need a solid accounting software system specific to Prop Mgt or it will quickly get out of hand. You need to make sure you have proper insurance (E&O and Liability). Possibly a real estate lic. depending on the state laws. And, most importantly you need Time.

I see how it can seem like an easy side business since you already know a bit about houses and leasing properties etc. But, it is more involved than that.

Having said all this, I still think it is a great business but it is not for everyone and not to be taken lightly or as a part-time job.